ACCA F4 - Corp and Business Law (ENG)

300 19: Other company officers  Part F Management, administration and regulation of companies

2.8.2 Removal of the auditor from office

Procedures for removal from office

Auditor

representations

If a resolution is proposed either to:

 Remove the auditors before their term of office expires or

 Change the auditors when their term of office is complete the auditors have the

right to make representations of reasonable length to the company

Company action The company must:

 Notify members in the notice of the meeting of the representations

 Send a copy of the representations in the notice

 If it is not sent out, the auditors can require it is read at the meeting

Attendance at

meeting

Auditors removed before expiry of their office may:

 Attend the meeting at which their office would have expired

 Attend any meeting at which the appointment of their successors is discussed

Statement of

circumstances

If auditors are removed at a general meeting they must:

 Make a statement of circumstances for members and creditors

Remember: A statement of circumstances/no circumstances must be deposited however the auditors

leave office.

Exam focus

point